Newsletter

fundinfo Newsletter No. 33 - PRIIP KIDs Special Edition

October 18, 2016

fundinfo is ready for PRIIP KIDs

BACKGROUND – WHAT ARE PRIIP KIDs?

With the new EU regulation for packaged retail investment and insurance-based investment products (PRIIPs), the so-called “Key Information Document” (KID) is compulsory as of Dec. 31, 2016. This new document summarises the most important information for investors in an easily comprehensible manner and is intended to improve transparency in the investment markets. The deadline for implementation, however, is still in-progress and it is apparent that the introduction will be postponed. Nevertheless, time is of the essence when it comes to implementation as numerous new data fields are being introduced to support this complex new document standard, and they must be published and distributed with every change.

WHICH PRODUCTS ARE AFFECTED?

Investment funds sold in the EU are affected, as well as structured products such as life insurance policies that are bundled together with funds.

A TECHNICAL CHALLENGE TO THE INDUSTRY

In addition to the factsheet and the KIID, the PRIIP KID is a third fund document that must be widely distributed. PRIIP KIDs must be created automatically due to the large quantity and numerous variants. If the graphical presentation of past performance is the focus of the factsheet, PRIIP KIDs provide future-oriented scenarios intended to give an impression of the opportunities and risks of a fund. In addition, the PRIIP KID introduces a new type of cost calculation which is an additional effort for the industry.

An EFAMA-supported working group presented the European PRIIPs Template (EPT) at the end of August 2016. Based on this template, openfunds (www.openfunds.org) created fields from which the corresponding fields used in the EPT can be derived. In the future, fund companies which implement and use the openfunds standard will also be able to extract the necessary data necessary for PRIIP KID production.

FUNDINFO: READY FOR PRIIP KIDS

fundinfo helps fund companies, insurers and PRIIP KID manufacturers to prepare their systems for the integration of these new data types so that they may process them quickly. Thanks to our "PRIIP KID Data and Document Dissemination Service", fundinfo is a reliable and experienced partner when it comes to the efficient distribution of your PRIIP KIDs data and documents.

FUNDINFO OFFERS A USER-FRIENDLY SOLUTION

With our "PRIIP KID Data and Document Dissemination Service" we ensure timely and reliable delivery of your data and documents to your sales partners. This includes many benefits and advantages:

  • Fund companies only need to make a single PRIIP KIDs data delivery to fundinfo. Subsequently, fundinfo reliably distributes the data to insurance companies and other distributors resulting in drastically reduced effort on both sides.
  • The distribution of PRIIP KIDs data can be combined with other fund master data as desired. fundinfo offers fund managers a comprehensive fund data distribution service.
  • Based on the new fund data standard openfunds, our process guarantees fast and precise processing of data. EPTs are fully integrated into the openfunds standard (www.openfunds.org).
  • Insurance companies and distributors receive data via a fully automated interface. This guarantees that distributors can quickly and easily create PRIIP KIDs.
  • In addition to the underlying data, PRIIP KIDs documents can also be directly published and distributed to distributors on an international basis via fundinfo. fundinfo operates a leading transnational network covering Europe and Asia.
  • Thanks to a very high degree of automation with continuous data integrity check, errors in data transmission and processing are reduced to an absolute minimum. This is essential to meet stringent regulatory requirements.

OVERVIEW OF FUNDINFO SERVICES

  • Fast acquisition, control and processing of PRIIP KIDs data and documents with subsequent delivery.
  • Reduction of error rate to an absolute minimum thanks to automation and full implementation of the openfunds standard (www.openfunds.org).
  • Efficient and cost-effective solution, especially for the processing and distribution of large amounts of data.
  • PRIIP KIDs data and document distribution can be combined according to your requirements. This also applies to all other master data.
  • Data delivery to fundinfo is possible via several methods (front end, interface, etc.)
  • The distribution of large amounts of data takes place via fully automated interfaces.
  • Ongoing monitoring and data quality statistics are provided.

CONTACT US

Our team of experts are available to answer all your questions regarding fundinfo’s services as well as topics surrounding PRIIP KIDs. Simply contact the fundinfo office nearest you.